The SEC charged a research scientist with insider trading in relation to allegations that he traded on confidential information obtained from his wife.
In a Complaint, the SEC alleged that Fei Yan received nonpublic information about forthcoming acquisitions from his wife, a New York-based corporate attorney. According to the SEC, Mr. Yan purchased large quantities of stocks from two companies on the basis of that information, and generated over $100,000 in profits by unloading his stocks post-acquisition.
The SEC also claimed that Mr. Yan conducted internet research on how to avoid the detection of insider trading by (i) using the search phrases, "how sec detect [sic] unusual trade" and "insider trading with international account," and (ii) viewing articles about SEC insider trading detection and enforcement actions. He also is alleged to have concealed his activity by placing the trades through a brokerage account in the name of his mother, a resident of China.
The United States Attorney's Office for the Southern District of New York charged Mr. Yan criminally for the same conduct.
Commentary / Steven Lofchie
Some things you just can't ask Siri.
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